-In the figure above,the shift in the supply curve for U.S.dollars from S₀ to S₂ could occur when

Name: -In the figure above,the shift in the supply curve for U.S.dollars from S₀ to S₂ could occur when
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When foreign interest rates rise, it becomes more attractive for investors to hold foreign assets, increasing the supply of U.S. dollars as investors exchange dollars for foreign currency to invest abroad. This shifts the supply curve from S₀ to S₂.

-In the Figure Above,the Shift in the Supply Curve for U.S.dollars